Global Express Energy Inc.
NEX BOARD : GXE.H

November 02, 2005 08:00 ET

Challenger Energy Corp. and Global Express Energy Inc. Announce Mailing of Shareholder Meeting Materials

CALGARY, ALBERTA--(CCNMatthews - Nov. 2, 2005) -

Challenger to Proceed with a Reverse Take-Over of Global Express Energy Inc. to Lever Shareholders into World-Class Prospects Offshore Trinidad and High Impact Plays Offshore Nova Scotia

Global Express Energy Inc. (NEX BOARD:GXE.H) ("Global Express" or the "Company") and Challenger Energy Corp. ("Challenger") are pleased to announce that they have finalized their joint management proxy circular in connection with their respective annual and special meetings, which are both scheduled to be held on November 30, 2005. At the meetings, shareholders of the Company will be asked to approve the amalgamation of the companies, pursuant to which Global Express and Challenger will amalgamate, and each of the Global Express and Challenger shareholders will receive one common share of the amalgamated company for each one common share of Global Express and Challenger held by them. In order to effect the amalgamation, Global Express will also be asking its shareholders to also approve a continuation of the company under the Canada Business Corporations Act. The parties are proceeding with the mailing of the meeting materials, which will concurrently be filed on SEDAR at www.sedar.com.

"Intrepid" Block 5(c)

Block 5(c) is located at the East Coast Marine Area, approximately 80 kilometres offshore Trinidad in water depths ranging from 150 to 500 metres. It comprises an area of approximately 80,000 acres. Geologically, it is part of the Columbus Sub-basin, which is known to have over 28 TCF of natural gas, making it one of the most coveted oil and gas basins in the world. The prospective reservoirs on the Block 5(c) "Intrepid" Block are expected by Challenger to be similar to the adjacent Dolphin field which has published reserves of 2.6 TCF and a productive capacity of 400 MMscf/d. Throughout the immediate area, natural gas reservoirs containing 1 to 3 TCF of gas are common.

Under the terms of a participation agreement (the "Participation Agreement") with Canadian Superior Energy Inc. ("Canadian Superior") (TSX/AMEX: SNG) Challenger will pay one third of certain costs and expenses paid by Canadian Superior and one third of all costs related to the first three wells drilled on the Intrepid Block, to earn a one quarter interest (25%) in the overall block. After earning, Challenger will share 25% of all costs, expenses and revenues earned.

Mayaro Bay and Guayaguayare Bay ("M/G") Block

The Mayaro Bay and Guayaguayare Bay ("M/G") Block is located just off the oil-prone Eastern shoreline of Trinidad and Tobago and is comprised of approximately 55,000 acres. Geologically, it is also part of the Columbus Sub-basin in the eastern part of the coveted Eastern Venezuela oil basin. Challenger has estimated the "best estimate" resource potential of the Mayaro Bay and Guayaguayare Bay ("M/G") Block, based on 2-D seismic and variations of pool size, net pay and reservoir parameters to be 257 million STB, covering three structures. The model for analyzing risk is based on 40 million STB reflecting a 40% probability of success on its before risk estimate. An independent engineering analysis (see press release dated October 11, 2005) has estimated that, for the unrisked case, 10 wells would be required to drain the reservoirs, resulting in 10 million barrels per well. For the after risk case, six wells have been anticipated, resulting in 6.7 million STB per well.

Under the terms of the Participation Agreement, Challenger will pay one third of all costs relating to the minimum work obligations of Canadian Superior under a farm-out agreement. Pursuant to its participation Challenger will earn 25% of the Canadian Superior earned interest in the Mayaro Bay and Guayaguayare Bay ("M/G") Block.

Offshore Nova Scotia Properties

Challenger will also be participating with Canadian Superior in Offshore Nova Scotia. An independent engineering report on Canadian Superior's Mariner Prospect (see press release dated October 11, 2005) was completed on the Mariner Prospect Offshore Nova Scotia effective March 11, 2005. The report sets out the economic feasibility of the exploration and development of the "Mariner Block". The overall program evaluated three wells drilled on the primary target, the cretaceous sands. Challenger has entered into an agreement with Canadian Superior whereby Challenger will pay 16.667% of the costs to drill and complete the next Mariner well, in order to earn 12.5% interest in the "Mariner" Block. The report estimates that total recoverable resources for three proposed wells on the prospect to be 405 BCF of marketable non-associated gas.

Risks

No reserves have been attributed to the properties listed above and there is currently no commercial production from these properties.

Given the exploration prospects being pursued, investors should be cautioned that an investment in the common shares of the Company may be considered highly speculative. Exploration for, and subsequent exploitation and production of, oil and natural gas involves a high degree of risk, which even the combination of experience, knowledge and careful evaluation of management of the Company may not be able to avoid. There is no assurance that commercial quantities of natural gas and oil will result from the Company's exploration programs.

The Company's operations will be subject to all of the risks normally incidental to the operation and development of natural gas and oil properties and the drilling of natural gas and oil wells including encountering unexpected formations or pressures, blow outs, cratering and fires, all of which could result in personal injuries, loss of life and damage to the property of the Company and others.

The recovery and reserve estimates on the properties are estimates only and actual reserves may be greater or less than those calculated.

Requirements to Completion of the Transaction

Investors are cautioned that, except as disclosed in the publicly disseminated press releases of the Company and the management information circular to be prepared in connection with the amalgamation, any information released or received with respect to the proposed amalgamation may not be accurate or complete and should not be relied upon. Trading in the securities of Global Express should be considered highly speculative at this time based on the information contained herein.

Cautionary Statements

This news release contains forward-looking information on future production, project start-ups and future capital spending. Actual results or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions. The information in this news release also includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

Statements contained in this news release relating to future results, events and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements.

The TSX Venture Exchange has in no way passed upon the merits of the proposed amalgamation and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Global Express Energy Inc.
    Mr. John Mackay
    President and Director
    (403) 619-3637
    Email: jmackay@jmackay.ca
    or
    Global Express Energy Inc.
    306, 908 - 17th Avenue SW
    Calgary, Alberta T2T 0A5
    (403) 619-3637
    (403) 234-9978 (FAX)
    or
    Challenger Energy Corp.
    Website: www.chaenergy.ca